corporate social responsibility motivations and country factors

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

In this article, “The Truth About CSR,” authors Rangan, Chase and Karim stress the importance in aligning a company’s social and environmental activities with its business purpose and values (Rangan, Chase, & Karim, 2015, 41). Outcomes of CSR programs should be a “spillover” and not a primary focus of a business, expressing concern towards social responsibility and corporations failing to contribute to society accordingly (Rangan, Chase, Karim, 2015, 42). There is a great deal of importance in companies refocusing their CSR activities on a primary goal and in providing an organized process for bringing consistency and discipline to CSR strategies (42). Rangan, Chase and Karim want corporations to understand why it is important for them to evaluate their CSR activities and refocus them towards the goal of reinforcing the firm’s societal and environmental actions, while also ensuring their actions add to the overall purpose and values of the corporation. According to the authors, even though

CSR lacks universal methods. The United Nations Industrial Development Organization (UNIDO) mentions that it is important to draw a distinction between CSR as part of strategic business management concept and charity, sponsorships or philanthropy. The latter applications make valuable social impacts that enhance the reputations of the companies, however, CSR is a continual effort instead of an instance. A few features that CSR should focus on are: eco-efficiency, employee and community relations, environmental management, gender balance, responsible souring, anti-corruption, stakeholder engagement and human rights. Utilizing some of these key features a company can bring competitive advantages into the market place. Increased sales and profits from operational cost savings as well as improved reputation and brand image and customer loyalty can result from a well-defined CSR strategy.

This form of CSR is entirely focused on improving the life of people in the local community where the businesses operations are usually based or retail from. Community based CSR usually is seen in giant multi-national corporations that utilize and rely on labor from developing or under-developed countries. One prime example is the coffee giant Starbucks, that has set in place various development programs to invigorate and enhance the quality of life among the local populous in the regional areas where they source their coffee from. These practices always have a very positive impact on the company image. Starbucks was voted the most ethical company three years running from 2009-2012. (Triplepundit.com)

Several researches have explored the connection between CSR and purchase intention. Creyer and Ross (1997) found that the ethical behaviour of companies in considered by consumers during purchase decision. Mohr et al. (2001) also supported this assumption and suggested that there is a ‘substantial market segment’ paying attention to companies’ CSR practices. A research developed by Prabu et al. (2005) obtained similar findings and added that Social Responsibility has as well a positive effect on corporate identity.

Archie Carroll defines corporate social responsibility (CSR) as “the social responsibility of business encompassing the economic, legal, ethical, and discretionary expectations that society has of these organizations at a given point in time.” (Crane, 5) Interesting enough, there has been an abrupt growth of firm’s engagement in CSR within all industries. This is the result of growing requests from the civil society demanding firms, of all sizes, to legitimize their practices. (Crane, 4)

One of the leading companies that adopted CSR as a pioneer of ethic is The Body Shop. The company has used CSR as a competitive strategy in order to succeed in business. The shop owner knows what she does best. So, products are developed based on a specific group of customers in order to create a strong brand preferences and unique way with a perception of enormous customer groups, called sustainability ideals. The source of The Body Shop success is to utilize the benefits of CSR by selling products based on natural ingredients, paying a fair price and no testing on animal. According to porter (1985), he claimed that sustainability of differentiation depends on two things: "it is continued perceived value to buyers and the lack of competitor ability to imitate it" (Porter 1985 cited in Mallin 2009, p.71). It requires a transparency of work process with stakeholders. From this example, it explains why CSR is important to modern businesses like The Body Shop (Mallin 2009, pp.59-78),(Kwapong 2005, p.89).

Eisingerich, AB & Bhardwai G, (2011) 'Corporate Social Responsibility: Does Social Responsibility Help Protect a Company’s Reputation? MIT Sloan Management Review, vol. 52(no. 1), pp. 18-28. [Accessed 23 July 2015]

When looking at a company’s corporate social responsibility (CSR) and the tie in to consumer confidence, the apparel industry illustrates both the best and the worst cases. Today’s consumers are more aware of how multinational corporations are incorporating or failing to incorporate CSR practices throughout the product lifecycle. This awareness has pushed companies in the apparel industry like Nike and Gap to evaluate current practices and incorporate socially responsible and environmentally responsible policies throughout their supply chain.

There is a multitude of definitions of Corporate Social Responsibility (CSR). According to Business for Social Responsibility, ‘CSR is defined as achieving commercial success in ways that honor values and respect people, communities and the natural environment.’ Alternatively, CSR has been described as ‘an action by a firm, which the firm chooses to take, that substantially affects an identifiable social stakeholder’s welfare.’ Osie-Kwame, S (July

Corporate Social Responsibility (CSR) is defined by Carroll as being split into four possibilities,”it is economically profitable, law abiding, ethical and Philanthropic” (Visser. W, 2005). Economic responsibilities is defined as being for profit purposes, managers focus is purely on the outcome of the business and the shareholders, there is

Corporate Social Responsibility (CSR) is a concept whereby organizations consider the wellbeing of the public by taking responsibility for the effect of their actions on all stakeholders; customers, employees, shareholders, communities and the environment in every aspect of their operations. This responsibility is seen to extend beyond the statutory obligation to comply with legislation and sees organizations willingly undertaking additional steps to improve the quality of life for employees and their families as well as for the local community and society at large.

Today, in this complex business environment where all business enterprises are surviving by realizing maximum profits possible, there exists a mechnism called Corporate Social Responsibility (CSR) that is providing the required edge towards success. Corporate social responsibility (CSR) is the way a corporation achieves a balance among its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations. This is because it is

Corporate Social Responsibility (CSR), a concept that has been around for well over 50 years, has become prominent again recently. Peter Utting (2005) notes that an increasing number of transnational corporations (TNCs) and large domestic companies, supported by business and industry associations, are adopting a variety of so-called voluntary CSR initiatives that incorporate, for example, ‘codes of conduct; measures to improve environmental management systems and occupational health and safety; company ‘triple bottom line’ reporting on financial, social, and environmental aspects; participation in certification and labeling schemes; dialogue with stakeholders and partnerships with NGOs and UN agencies; and increased support for community development projects and programes’. The revival of CSR is reflected also in its recent prominence in public debate. CSR has also generated a very extensive literature in recent times. For example, a search on Google Scholar for the phrase ‘corporate social responsibility’ produced 12,500 citations. A more general search of the internet on Google for the phrase ‘corporate social responsibility’ produced 12,900,000 results. A general search for the phrase ‘corporate social responsibility’ on Australian sites produced 97,800 hits. This research paper is a conceptual paper regarding CSR consists the introduction, historical background of CSR, arguments

The purpose of this report is to highlight the implementation of corporate social responsibility (CSR) in the company .CSR is the continuing commitment by business to contribute to economic development while improving the quality of life of the worker force and their families as well as of the community and society at the large .According to Nielsen’s Global Survey on corporate social responsibility(2014),shows that 55% of global online customers in 60 countries said that they can spend